By Michael Mcgregor Howard
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Extra info for The Economic Development of Barbados
Example text
The importance of his thesis is its indication that size limits the range of policy options available to small countries and is therefore a binding constraint on the rate of structural transformation. Demas is prepared to analyse the size parameter while abstracting from historical and institutional variables. Even though he is aware of these factors, his argument is that size provides the structural context and is unalterable. Size also generates structural dependence. Demas’s central position is really derived from the classical thesis that economies of scale are limited by the size of the market.
The increased reliance on external financing reflected the transition from colonial rule to internal self-government and political independence. POLICY AND PLANNING IN THE SERVICE ECONOMY PERIOD Planning in Barbados during the service economy period continued to be public sector oriented. The analysis here deals with the public policy aspects of planning and, to a lesser extent, the financial implications of planning. Development planning was primarily concerned with statements of intended projects for the public sector.
Colonial Office 1948:13) Gallotti’s thesis was that industrial progress leads to a rise in imports, which stimulates living standards and population growth, and hence creates an imbalance between the rate of growth of the labour force and the labour absorption capacity of industry. Colonial Development Policy and Planning Ⅲ 27 Metropolitan industrial growth was not a good example for the colonies. Gallotti submitted that, although the high per capita incomes in the metropole were no doubt associated with the expansion of secondary industry, this was attributable to high labour productivity and continuous development of techniques and skills.